In response to the petrol subsidy removal, President Bola Tinubu has taken significant steps to mitigate its impact by approving the establishment of the Infrastructure Support Fund (ISF) across all 36 States of the Federation.
This decision, announced during the monthly meeting of the Federation Account Allocation Committee (FAAC) on Thursday, aims to empower the States to invest in crucial sectors such as transportation, agriculture, livestock and ranching solutions, health, and education. By focusing on these areas, the ISF is expected to boost economic competitiveness, generate employment opportunities, and foster economic prosperity for the Nigerian people. Daily Post reported.
Additionally, the Committee has decided to allocate a portion of the monthly distributable revenue towards building reserves. This move is intended to minimize the effects of increased revenues resulting from subsidy removal and exchange rate unification on money supply, inflation, and the exchange rate.
From the distributable revenue of N1.9 trillion for June 2023, only N907 billion will be distributed among the three tiers of government. The remaining N790 billion will be saved, and the rest will be used for statutory deductions. These savings will complement the efforts of the Infrastructure Support Fund and other planned fiscal measures. The overall objective is to ensure that the subsidy removal translates into tangible improvements in the lives and living standards of Nigerians.
The Committee expresses its appreciation to President Tinubu for his courageous decision to remove the petrol subsidy. Equally significant is his provision of necessary support to the States, aiming to ease the effects of the subsidy removal on the citizens of Nigeria.
